Photo Credit: TURISMO MADRID. A Special Report on the REGION OF MADRID

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2 Photo Credit: TURISMO MADRID A Special Report on the REGION OF MADRID

3 Key Facts Madrid is one of the world s preferred locations for foreign investment due to its position as a leading global financial and international business centre, opportunities for professional development, as well as its unique quality of life Area Population Foreign Population Visitors (2013) GDP (2013) MADRID AT A GLANCE GDP per capita GDP growth (2015) R&D GDP (2012) 8,030 Km million 0.96 million 9.2 million billion 17.9% of Spanish GDP 28,914 (2013); 28,7% over the Spanish average 2.8% % 1 st Madrid is the main FDI destination in Spain, reaching 68.6% of the total in 1st Semester st Madrid hosts more than 5,500 foreign companies, 40% of the total approx. 3 European destination of foreign companies investment 2 nd projects 2 6th most attractive city in the world, just behind London, Paris, Beijing, Shanghai and New York 4 3 rd European city and 8th worlwide for multinational operative headquarters 3 City in the world attracting international meetings and 2 nd conferences 5 Sources: (1) BBVA Reserarch forecasts. (2)IBM Global location trends report 2013; (3) E&Y European Attractiveness Survey; (4) Cities of opportunities PwC (5) Madrid is the second largest destination for congresses, according to the prestigious ranking of the International Congress and Convention Association (ICCA)

4 Why Madrid? A BUSINESS FRIENDLY ECONOMY Lowest fiscal pressure in Spain and competitive labour costs The Madrid City and Regional Governments make as easy as possible for international business people and investors to establish a company in the region and to maximize their potential by forging a business-friendly environment: Efficient market oriented economy Lowest fiscal pressure in Spain Competitive labour costs Flexible commercial time schedule (24 hour) Madrid hosts 40% of foreign companies in Spain, more than 5,500 HIGHLY-QUALIFIED HUMAN CAPITAL 1st region in Spain in higher education levels QUALIFIED HUMAN CAPITAL 1 st region in Spain for the level of qualifications of its active population Madrid ranks 2 nd in terms of rate of active population in Spain (63.7% in 3Q14). 46% of the active population has a university degree (28.5% in the EU-28. Eurostat). CULTURAL DIVERSITY 26% of the population in the Madrid Region comes from elsewhere in Spain. Almost 15% of its population are foreigners. YOUNG AND READY 42,762 graduates en 2012 (20.6% of Spain). 265,347 University students ( ) European preferred destination for the ERASMUS programme

5 Why Madrid? AN IDEAL PLATFORM FOR PROFESSIONAL DEVELOPMENT Madrid offers world-class educational and research opportunities; an ideal location to enhance your professional knowledge and develop your career. HIGHER EDUCATION NETWORK 16 universities (8 private and 6 public universities, as well as 2 distance learning universities). 3 business schools ranked within the world s top 20 Three business schools located in Madrid are included in the Europe s top 10: IE 1 st, ESADE 3 rd and IESE 6 th (Financial Times). Madrid s Institutes for Advanced Studies (IMDEA) facilitate public-private partnership (PPP) programs and attract international talent to the region. A PLACE FOR SCIENCE AND TECHNOLOGY Spanish region with the highest expenditure on research, development and innovation (25.6% of national total), representing 1.85% of the regional GDP. 2 nd region in Europe for its number of professionals dedicated to high technology sectors. Madrid hosts most of the international companies that operate in the farma sector. Companies like GlaxoSmithKline, Merck, Sanofi Aventis or Lilly have set up their research centres of excellence in Madrid. Madrid is one of the largest clusters in Europe and Spain s leading region in the aerospace industry. It accounts for more than 65% of the sector's turnover. Home to nearly 50% of telecom and information technology firms in Spain. The Madrid Region is the base for 44 Centres and Institutes for Research of the principal public body for scientific research in Spain (CSIC). Highest investment on research, development and innovation

6 Why Madrid? AN INTERNATIONAL LOGISTICS & SERVICES HUB EXCELLENCE IN SERVICES Madrid is recognized for its excellence in services related to renewable energies, retail and distribution, aerospace and aeronautics and tourism services, and particularly related to finance and banking and professional services. Madrid s services sector generates more than 75% of the regional GDP. The Madrid Region is also first in Spain for the number of professionals in the services sector, with 2.3 million employees (18% of the national total). This translates into greater accessibility to professional services in terms of availability and costs. INTERNATIONAL AIR TRANSPORT Adolfo Suárez Madrid - Barajas Airport, 12 km away from the city centre. 1 st in Spain in terms of passengers and cargo in 2013 (more than 200 companies operating) 2 nd in Europe in terms of capacity (70 million passengers). ROAD AND RAIL INFRASTRUCTURE Madrid is the center of the rail and road transport system: 3,100 km of high-speed railway tracks A road network of over 3,400 km World-class subway with more than 300 stations and almost 300 km. LOGISTICS CENTRES 25 logistic centres are located in the region. Barajas-Coslada logistic platform, which includes the Coslada Dry Port, which receives freight trains from the 4 main ports of Spain, as well as from Lisbon. Madrid-Abroñigal Rail freight Platform in the South of Madrid. Largest logistics surface area in Spain. 75% of logistics companies (both Spanish and international) are headquartered in Madrid.

7 Why Madrid? BUSINESS CHANNEL BETWEEN EUROPE AND LATIN AMERICA Spain and Latin America have shared a common language, culture and international trade relations for centuries. Madrid benefits from Spain s close political relations with Latin America: Spain has signed 20 agreements for Protection and Promotion of Reciprocal Investments and 16 to Avoid Double Taxation in Central and South America. Spain is the 4 th biggest foreign investor in Latin America, and the 2 nd among the European investors. Madrid offers close access to Latin American markets 30% of Madrid s foreign population comes from Latin America. Madrid-Barajas is the main European hub with flights to Latin America: 1 out of 5 flights/ 35% of total air traffic with the region. A UNIQUE QUALITY OF LIFE Madrid hold excellent positions on the various rankings on the quality of life and preferred places for living and working (Cushman Wakefield, Financial Times/Harris, Monocle, Forbes, etc.). The 2014 Cost of Living Ranking, made by Mercer consulting group, shows Madrid as one of the European cities where expatriates enjoy a lower relative cost. EDUCATION & HEALTH CARE The quality of life in Madrid is unique, since it has an international education system that begins at primary school (there are more than 49 international schools and 335 bilingual schools and 97 bilingual high schools that use English as a language in the classroom), a universal health system and safety indexes that are among the highest in Europe. CULTURE & LEISURE The region also offers a wealth of leisure, cultural and sporting activities for all ages, several world heritage sites, some of the world s best collections of art (Prado, Thyssen and Reina Sofia Museums) and not-to-forget Spanish well-known gastronomy and a vibrant nightlife.

8 Contact Us is the public agency for the foreign investors and as the one-stop shop provides the following services: STRATEGY RELATED ADVISORY RECRUITMENT BUSINESS SET-UP NETWORKS LOCATION SCOUTING & SITE VISIT AFTER CARE & EXPANSION FULL SUPPORT FOR FDI PROJECTS General Díaz Porlier 35 1 st floor Madrid Ph

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